Financial Analysis: GEMALTO NV/S (OTCMKTS:GTOMY) & Rigetti Computing (NASDAQ:RGTI)

GEMALTO NV/S (OTCMKTS:GTOMY) and Rigetti Computing (NASDAQ:RGTI) are both computer and technology companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, risk, analyst recommendations, profitability, dividends, earnings and valuation.

Volatility & Risk

GEMALTO NV/S has a beta of 0.29, indicating that its stock price is 71% less volatile than the S&P 500. Comparatively, Rigetti Computing has a beta of 2.72, indicating that its stock price is 172% more volatile than the S&P 500.

Insider & Institutional Ownership

35.4% of Rigetti Computing shares are held by institutional investors. 2.8% of Rigetti Computing shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares GEMALTO NV/S and Rigetti Computing”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GEMALTO NV/S	$3.51 billion	1.45	$72.13 million	N/A	N/A
Rigetti Computing	$11.89 million	151.51	-$75.11 million	($0.38)	-24.66

GEMALTO NV/S has higher revenue and earnings than Rigetti Computing.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for GEMALTO NV/S and Rigetti Computing, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GEMALTO NV/S	0	0	0	0	0.00
Rigetti Computing	0	0	5	0	3.00

Rigetti Computing has a consensus price target of $4.80, indicating a potential downside of 48.77%. Given Rigetti Computing’s stronger consensus rating and higher possible upside, analysts clearly believe Rigetti Computing is more favorable than GEMALTO NV/S.

Profitability

This table compares GEMALTO NV/S and Rigetti Computing’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
GEMALTO NV/S	N/A	N/A	N/A
Rigetti Computing	-509.58%	-51.56%	-37.78%

Summary

Rigetti Computing beats GEMALTO NV/S on 7 of the 12 factors compared between the two stocks.

About GEMALTO NV/S

Gemalto N.V. provides digital security products and services worldwide. The company operates through two segments, Identity, IoT & Cybersecurity; and Smartcards & Issuance. It designs security solutions to governments, industrial companies, and enterprises; and ePassports, border and visa management, biometrics, ID and health cards, voter and vehicle registration, drivers' licenses, and eGovernment support services. The company also offers machine-to-machine, and Internet of Things solutions and services; encrypting data, securing identities, and managing access services; and software licensing solutions. In addition, it provides smart card products and solutions to financial institutions, retail, transport, and mobile network operators; and secures digital banking and payment apps and services, as well as protects company and customer data through encryption. Further, the company offers ID verification solutions, mobile and Assurance Hub technologies solutions, trusted services hub services. Additionally, it licenses its intellectual property and provides security and other technology advisory services. The company was formerly known as Axalto Holding N.V. and changed its name to Gemalto N.V. in June 2006. Gemalto N.V. was incorporated in 2002 and is headquartered in Amsterdam, the Netherlands. As of April 15, 2019, Gemalto N.V. operates as a subsidiary of Thales S.A.

About Rigetti Computing

Rigetti Computing, Inc., through its subsidiaries, builds quantum computers and the superconducting quantum processors. The company offers cloud in a form of quantum processing unit, such as 9-qubit chip and Ankaa-2 system under the Novera brand name; and sells access to its quantum computers through quantum computing as a service. It also provides quantum cloud services that provides various range of support in programming, public or private clouds integration, and connectivity, as well as quantum operating system software that supports both public and private cloud architectures. In addition, the company offers professional services, such as algorithm development, benchmarking, quantum application programming, and software development. The company serves commercial enterprises, government organizations, and international government entities. It has operations in the United States and the United Kingdom. Rigetti Computing, Inc. was founded in 2013 and is headquartered in Berkeley, California.